RG Premier Bank v. Alvarado (In Re Alvarado)
463 B.R. 200
D.P.R.2011Background
- Debtor Feliciano filed Chapter 11 bankruptcy on February 24, 2010 in the District of Puerto Rico.
- RG Premier Bank of Puerto Rico (later Scotiabank) filed Claim No. 43 as a secured claim backed by Feliciano's real property, supported by mortgage note, deed, and loan agreement.
- Feliciano objected to Claim No. 43 on July 16, 2010, arguing RGP had no perfected security interest due to recordation defects and title issues.
- RGP amended the claim on August 10, 2010 to $85,568.49; Feliciano replied; the bankruptcy court on September 13, 2010 allowed the claim as unsecured.
- RGP sought reconsideration; October 18, 2010 order denied; court did not rule on RGP’s request to record the judicial sale deed.
- The district court remands for further proceedings due to incomplete record, Spanish-language documents, and lack of findings of fact/conclusions of law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 362(b)(3) permits perfection of a prepetition interest. | Feliciano argues RGP cannot perfect postpetition; lien status not established. | RGP contends 362(b)(3) allows perfection of a prepetition interest free of the stay. | Remanded; record incomplete on 362(b)(3) applicability. |
| Whether the bankruptcy court erred by not ruling on perfection under 362(b)(3). | RGP maintains the court should decide if perfection is permissible. | Feliciano contends no perfection under the statute. | Remanded for decision after complete record. |
| Whether the record on appeal is complete and admissible given Spanish-language documents. | RGP argues documentation should be examined; but record is incomplete. | Feliciano challenges the evidentiary status of Spanish documents. | Remanded; need certified English translations and complete record. |
Key Cases Cited
- In re 229 Main Street Ltd. Partnership, 262 F.3d 1 (1st Cir. 2001) (interprets 'interest in property' as broader than 'lien' for 362(b)(3))
- Soto Ríos, 420 B.R. 57 (Bankr.D.P.R. 2009) (analyzes 362(b)(3) requirements and trustee powers under PR Mortgage Law)
- Gasolinas de Puerto Rico Corp. v. Vazquez, 155 D.P.R. 652 (Puerto Rico Supreme Court 2001) (recordation timing and effect on priority of rights)
- Ponce Federal Savings v. Registrador, 105 D.P.R. 486 (Puerto Rico Supreme Court 1976) (recordation timing and retroactive effects)
- Doral Mortgage Corp. v. Segarra-Miranda, 412 B.R. 72 (D.P.R. 2009) (notes prior tempore potior iure and registry presentation rules)
- Airframe Systems, Inc. v. L-3 Communications Corp., 658 F.3d 100 (1st Cir. Mass. 2011) (Best Evidence Rule considerations and admissibility of Spanish-language filings)